To The Moon

Singapore's construction sector remains one of the most visible beneficiaries of the country's investment cycle.

Construction demand reached S$50.5 billion in 2025, and BCA expects a further S$47 billion to S$53 billion of project awards in 2026, supported by major transport, healthcare, housing and commercial developments.

Projects spanning Changi Airport Terminal 5, the Marina Bay Sands expansion, the New Tengah General & Community Hospital, the Downtown Line 2 Extension and the Thomson-East Coast Line Extension provide visibility across both public and private sector pipelines. BCA also expects construction demand to average S$39 billion to S$46 billion annually from 2027 to 2030.

Among Singapore's Strongest-Growing Sectors

Construction was among Singapore's strongest-performing sectors of the economy in 1H26, expanding 11.8% year on year in 1Q26 before growing a further 6.2% in advanced 2Q26 estimates.

The sector was the fastest-growing major sector in 1Q26, with growth supported by both public and private sector construction activity, including institutional, residential and industrial developments. The 2Q26 advance estimates showed continued growth across both public and private sector construction output, even as manufacturing became the fastest-growing sector in the quarter.

The Construction Multiplier

The significance of the sector extends beyond project awards and construction output. The latest Singapore Department of Statistics Input-Output Multipliers dataset shows total output multipliers of 2.248x for building construction, 2.000x for civil engineering works and 1.795x for specialised construction services.

The figures highlight how construction demand extends beyond the project site, supporting activity across materials, engineering, logistics, equipment and professional services. This reinforces construction's role as a key transmission channel through which infrastructure investment flows into the broader economy.

Infrastructure, Energy & Connectivity

The current cycle is also broader than traditional construction activity. The pipeline spans airports, rail infrastructure, healthcare facilities, housing, utilities, commercial developments and digital infrastructure.

Together, these investments are expanding the transport, industrial and connectivity assets that underpin economic activity, positioning construction as a key delivery channel within the broader Infrastructure, Energy & Connectivity macroeconomic theme. At the stock level, value creation can also be realised through a range of levers, including Growth & Transformation initiatives, Asset Optimisation, Capital Formation and Market Recognition, leveraging the underlying investment cycle. 

Corporate Activity Across the Value Chain

Recent corporate announcements continue to indicate sustained project activity.

Boustead Singapore’s reported an engineering order backlog of approximately S$840 million at the end of FY26 (ended 31 March) and the securement of a further S$461 million of engineering contracts and major variations in the opening months of FY27, including the group's largest contract to date. Construction order books and assets linked to the construction value chain span a significant number of Singapore-listed stocks.

Strategic Investments & Ongoing Delivery

In July, Volare Group AG emerged as a substantial shareholder of $BBR(KJ5.SI)$ through two off-market acquisitions completed on 10 July and 13 July. The Swiss-based investment group acquired a total of 43.0 million shares for S$12.9 million, increasing its direct interest from 1.35% to 14.69% within three days.

The interest comes as BBR continues to participate in Singapore's infrastructure and construction pipeline. The group secured new project wins in FY25 and remained involved in civil engineering, specialised infrastructure and building works, with exposure spanning transport infrastructure, integrated developments and public sector projects. Recent project announcements also included additional contract awards and project works secured, reinforcing BBR's participation in ongoing infrastructure delivery across Singapore.

Corporate & Earnings Developments

Additionally, July saw Koh Brothers Eco Engineering propose a transfer from the Catalist Board to the SGX Mainboard.

The move follows a period of significant expansion, with the group reporting an engineering and construction order book of approximately S$1.13 billion (as of 31 Dec 2025) and exposure across civil engineering, building construction and precast concrete manufacturing. This positions the company across multiple layers of the construction value chain, spanning both project delivery and construction materials.

July has also brought divergent earnings guidance across the sector. $EnGro(S44.SI)$ guided for a significant improvement in 1H26 net profit, supported by higher sales volumes from its core building materials businesses and higher unrealised fair value gains from venture capital investments. In contrast, $Hock Lian Seng(J2T.SI)$ guided for an operating loss in 1H26, citing higher operating costs in its civil engineering segment, including increased concrete, steel, manpower, transportation and subcontractor costs.

The 20 companies below represented the largest capitalised Singapore-listed stocks that span multiple layers of local, regional and international construction value chains. 

Note: ADT refers to Average Daily Trading Turnover, NIF refers to Net Institutional Flow, NRF refers to Net Retail Flow. Data sourced by SGX and LSEG Workspace, and as of 22 July 2026.

As tabled above, over the past 12 months, the strongest share price performers across the local to international construction value chains were $Intl Cement(KUO.SI)$ $GRC(S3N.SI)$ $SoilbuildConstr(ZQM.SI)$ $Koh Bros(K75.SI)$ $Huationg Global(41B.SI)$. The five companies span construction materials, project delivery and engineering-related activities, illustrating the breadth of investor interest across different parts of the sector.

While companies such as $OKP(5CF.SI)$ $Ley Choon(Q0X.SI)$ $BBR(KJ5.SI)$ $Lum Chang(L19.SI)$ $Huationg Global(41B.SI)$ $Koh Bros(K75.SI)$ provide direct exposure to project delivery and civil engineering works, companies such as $BRC Asia(BEC.SI)$ $PanUnited(P52.SI)$ $EnGro(S44.SI)$ $NSL(N02.SI)$ $Intl Cement(KUO.SI)$ participate through reinforcing steel, concrete, cement and precast products.

Others, including $Boustead(F9D.SI)$ $CSC(C06.SI)$ $Tiong Woon(BQM.SI)$ $Sanli Env(1E3.SI)$ provide exposure through engineering services, foundations, project logistics and infrastructure-related works. Together, these companies reflect the multiple layers of activity that support construction demand not just in Singapore but across the globe. For instance, while International Cement Group is SGX-listed, its revenue is now predominantly generated in Kazakhstan, Tajikistan, Kyrgyzstan and Afghanistan.

Notable value levers in action over the past 12-18 months include GRC expanding its construction platform through the acquisition of Chip Eng Seng Construction Pte. Ltd and its subsidiaries in April 2025, while International Cement Group commissioned its 1.5 million tonne Korcem cement plant, increasing annual cement capacity in Central Asia to 5.5 million tonnes. Together, the examples illustrate how acquisitions and capacity expansion have been used to broaden capabilities, increase scale and capture opportunities linked to construction and infrastructure demand. 

On a final note, construction order books and assets linked to the construction value chain span a significant number of Singapore-listed stocks. Beyond project delivery and construction materials, companies such as Seatrium, Keppel, Sembcorp Industries, SATS and SIA Engineering participate in the same investment cycle through engineering projects, infrastructure assets, utilities, logistics networks and aviation connectivity. This highlights how construction demand frequently extends beyond the project site, supporting energy systems, transport infrastructure, industrial capacity and trade connectivity across the broader economy